What is the maximum payment that can typically be processed under the BACS scheme?

The BACS (Bankers' Automated Clearing Services) scheme is primarily used for the electronic processing of interbank payments in the UK, particularly for direct debits and direct credits, such as salary payments or supplier invoices. The maximum payment amount that can be processed under the BACS scheme is £250,000 per transaction. However, there are no formal limits on the total aggregate values that can be processed on a given day across multiple transactions.

The choice of £20m represents a common understanding of aggregate transaction limits in some interpretations of the service, as users often rely on multiple transactions to meet their payment needs. Other options, such as £1m, £5m, and £100m, do not accurately reflect the operational guidelines and limits established by BACS for either single transactions or an adequate aggregate total across multiple transactions typically allowed processed during a business day.

It is important for users to understand these transactional limits to effectively manage their payment processing without exceeding the permissible thresholds on the service.